![]() As a result of this policy, the currency exchange market in Iran is a fractured multilayered singularity, including several submarkets offering ample opportunities for corruption. Consecutive administrations have adopted this approach for the past 40 years, and it has never lowered the inflation rate. In other words, the Iranian government believes if it sets the exchange rate, it is controlling domestic prices. Believing in the myth that if it controls hard currency resources and manipulates the currency exchange rate, it can restrain inflation. The Iranian government is utterly reluctant to adopt a single currency exchange market it has divided the markets and created a puzzling bureaucratic labyrinth when it comes to exchanging currency. As the Iranian government refuses to learn from the past and the present episodes, it is doomed to repeat history. The Iranian authorities and policymakers always search for an individual or a group of individuals to blame for the unfolding crisis, since their adopted macroeconomic policies and monetary measures remain irreproachable. However, the government’s response to the increased ambiguity and volatility cycles remains the same. The volatility cycles have become a frequent event in Iran’s economy, and no one finds them surprising. The currency exchange market in Iran is experiencing another volatility cycle with the Iranian rial (IRR), losing its value repetitively against foreign currency.
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